TRID, RESPA, and Other Mortgage Regulations Overview

A set of vocabulary flashcards covering key concepts related to TRID, RESPA, and various mortgage regulations relevant for exam preparation.

TRID

TILA-RESPA Integrated Disclosure; created to help borrowers understand the terms of their home financing transactions.

Loan Estimate (LE)

A document that must be provided to borrowers within 3 business days after receiving a complete loan application, combining the GFE and the INITIAL TIL.

Closing Disclosure (CD)

A document that details all final terms of a mortgage loan, including loan and closing costs; combines HUD-1 and FINAL TIL.

Zero Tolerance Fees

Fees that consumers cannot shop for and include those paid to unaffiliated service providers for required services.

Tolerances under TRID

The amount of change allowed between the Loan Estimate and Closing Disclosure without constituting a violation.

Qualified Written Request (QWR)

A request by a borrower for information related to servicing a mortgage loan or to assert an error.

RESPA

Real Estate Settlement Procedures Act; provides protection for borrowers in real estate transactions.

Qualified Mortgage (QM)

A loan type that meets certain criteria to ensure borrowers can repay based on specific, less risky features.

Lender’s responsibility under TRID

The Lender is ultimately responsible for providing the Loan Estimate to the borrower.

Escrow Account

An account set up by the lender to pay property taxes, homeowner's insurance, and PMI.

Home Loan Toolkit

A guide provided to borrowers within 3 days of completing a loan application, help assess affordability, and prepare for home buying.

Penalties for TRID violation

A penalty of up to $1,000,000 for failing to disclose required information to the borrower.

Credit Report Fee

The only fee that can be charged before the borrower has received the Loan Estimate and expressed intent to proceed.

Equitable Right of Redemption

The right of a borrower to reclaim property before it is sold by paying off the entire mortgage balance.

Statutory Right of Redemption

The right to repurchase property back at the sale price after foreclosure.

Occupancy Fraud

When a borrower misrepresents the occupancy status of a property to secure a mortgage.

Appraisal Contingency

A clause that requires the property to appraise at or above the purchase price in a real estate transaction.

Adjustable Rate Mortgage (ARM)

A mortgage where the interest rate may change after an initial fixed rate period.

Balloon Mortgage

A mortgage with a large final payment due at the end of the loan period.

Flood Insurance

Insurance required for properties in designated flood zones, covering loss due to flood damage.

Good Faith Estimate (GFE)

A form that provides estimates of mortgage terms and costs, previously required before TRID implemented.